BAB, Inc. Reports Results for 3rd Quarter FY 2023

Rhea-AI Summary

BAB, Inc. announces Q3 2023 financial results with revenues of $937,000 and net income of $168,000.

Positive

• Revenues increased by 6.2% compared to the same quarter last year.
• Royalty revenue and marketing fund revenue increased for Q3 2023 compared to Q3 2022.

Negative

• Franchise fee revenue and License fee and other income decreased in Q3 2023 compared to Q3 2022.

DEERFIELD, Ill., Oct. 05, 2023 (GLOBE NEWSWIRE) -- BAB, Inc. (OTCQB: BABB), announced its financial results for the third quarter ended August 31, 2023.

For the quarter ended August 31, 2023 BAB had revenues of $937,000 and net income of $168,000, or $0.02 per share earnings, versus revenues of $882,000 and net income of $164,000, or a $0.02 per share, for the same quarter last year. Royalty revenue and marketing fund revenue increased for the third quarter 2023 compared to third quarter 2022. Franchise fee revenue and License fee and other income decreased in the third quarter ended August 31, 2023 compared to same quarter 2022.

For the nine months ended August 31, 2023, revenues were $2,547,000 and net income was $330,000, or $0.05 per share, versus revenues of $2,445,000 and net income of $321,000, or $0.04 per share for the same period in 2022.

Total operating expenses for the quarter ended August 31, 2023, were $718,000, versus $653,000, in 2022. The change in operating expenses for the quarter was primarily due to an increase in marketing fund expenses of $58,000, an increase in professional fees of $5,000, an increase in payroll and payroll related expense of $8,000 and an increase in travel of $2,000, offset by a decrease in franchise development expense of $8,000. Total operating expenses for the nine months ended August 31, 2023 were $2,107,000 versus $1,996,000 for August 31, 2022 with an increase in marketing expenses of $62,000, payroll and payroll related expenses of $22,000, professional fees increased $20,000, an increase in travel expense of $3,000, annual meeting expenses increased $5,000 and general expenses increased $11,000 for nine months, offset by a decrease in franchise development expense of $12,000 in 2023 versus same period 2022.

BAB, Inc. franchises and licenses Big Apple Bagels®, My Favorite Muffin®, SweetDuet® frozen yogurt and Brewster’s® Coffee. The Company’s stock is traded on the OTCQB under the symbol BABB and its website can be visited at www.babcorp.com.

Certain statements in this press release constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “forecast,” “estimate,” “project,” “intend,” “expect,” “should,” “would,” “believe” and similar expressions and all statements which are not historical facts are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors which could cause the company’s actual results, performance (financial or operating), or achievements to differ from the future results, performance (financial or operating), or achievements expressed or implied by such forward-looking statements. The above factors are more fully discussed in the company’s SEC filings.

(TABLE FOLLOWS)

BAB, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
	Quarter Ended											Nine Months Ended
	08/31/23				08/31/22				% Change			08/31/23				08/31/22				% Change
REVENUES
Royalty fees from franchised stores	$	515,970			$	481,833			7.1	%		$	1,453,511			$	1,361,545			6.8	%
Franchise and area development fee revenue		11,306				15,882			-28.8	%			22,707				33,961			-33.1	%
Licensing fees and other income		63,889				97,172			-34.3	%			199,883				241,244			-17.1	%
Marketing Fund Revenue		345,486				287,402			20.2	%			870,543				808,279			7.7	%
Total Revenue		936,651				882,289			6.2	%			2,546,644				2,445,029			4.2	%
OPERATING COSTS AND EXPENSES
Selling, general and administrative		371,380				365,016			1.7	%			1,233,982				1,183,767			4.2	%
Depreciation and amortization		981				923			6.3	%			2,826				3,517			-19.6	%
Marketing Fund Expenses		345,486				287,402			20.2	%			870,543				808,279			7.7	%
Total Expense		717,847				653,341			9.9	%			2,107,351				1,995,563			5.6	%
Income from operations		218,804				228,948			-4.4	%			439,293				449,466			-2.3	%
Interest expense		-				-			-				-				-			-
Interest/other income		15,054				153			9739.2	%			20,613				282			7209.6	%
Income taxes		(66,100	)			(64,746	)		2.1	%			(130,300	)			(128,587	)		1.3	%
NET INCOME	$	167,758			$	164,355			2.1	%		$	329,606			$	321,161			2.6	%
Earnings per share - basic and diluted	$	0.02			$	0.02			N/M			$	0.05			$	0.04			N/M
Average number of shares outstanding		7,263,508				7,263,508							7,263,508				7,263,508

Contact:	BAB, Inc.
	Michael K. Murtaugh (847) 948-7520
	Fax: (847) 405-8140
	www.babcorp.com

 

 

FAQ

What were BAB, Inc.'s revenues for Q3 2023?

BAB, Inc. had revenues of $937,000 for Q3 2023.

What was BAB, Inc.'s net income for Q3 2023?

BAB, Inc. had a net income of $168,000 for Q3 2023.

How did revenues compare to the same quarter last year?

Revenues increased by 6.2% compared to the same quarter last year.

Did royalty revenue and marketing fund revenue increase or decrease?

Royalty revenue and marketing fund revenue increased for Q3 2023 compared to Q3 2022.

Did franchise fee revenue and License fee and other income increase or decrease?

Franchise fee revenue and License fee and other income decreased in Q3 2023 compared to Q3 2022.